Czech industrialists brace for no-deal Brexit hit

Czech industrialists brace for no-deal Brexit hit

Published at: 2019-08-15 10:49 | Author: CIJEurope.com
The Czech Confederation of Industry warns that the its members could lose CZK 30bn as a result of a no-deal Brexit. It also fears that billions more could be lost because of reduced levels of investment. The head of the Czech chamber of commerce is also fearful of the coming storm, with prime minister Boris Johnson hellbent on cutting off his country's access to the European market. "Britain's exit from the EU will slow the Czech economy by several tenths of a percent," wrote the chamber predicting that it will take roughly a year for the situation to stabilize. "That's how long it will take for supply chains to settle. Overall, Brexit will have a short-term impact on the economy but it can't lead the Czech Republic into recession on its own," said the chamber's spokesman Miroslav Diro. Česká spořitelna analysts are predicting a 1.1 percent fall in Czech GDP, but the Confederation of Industry believes this is too optimistic, warning that the country's dependence on the automobile sector is highly vulnerable. It believes that only 20 percent of its members have taken any measures to prepare for Brexit and that only 3 percent have done so actively.

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